NAHMA USDA Update: Construction Monitoring and Change Order Guidance

November 8, 2021

Dear NAHMA Members,

Please find below a recent RD stakeholder announcement regarding the construction monitoring and change order process. For more information, please view the announcement below.


Multi-Family Housing

Stakeholder Announcement

Construction Monitoring and Change Order Guidance
Production and Preservation Division
Processing and Report Review Branches

This notice is being sent to outline the construction monitoring and change order process. A Production and Preservation Division, Processing and Report Review Branch (PRR) Team Member is assigned to monitor construction once closing is scheduled, and notification of the assignment can be expected via email with the Team Member’s information to the project owner. If notification of the assignment has not been received, please email Jonathan Bell at [email protected].

Upon assignment, the PRR Team Member will be the primary point of contact for all construction monitoring and change order activities and will establish contact promptly with the interested parties.

Provided all construction documents have been reviewed and concurred by the Agency, a preconstruction conference should be scheduled within one week after closing and must include the Owner, Project Architect, Contractor, PRR Team Member, Agency Architect (if available), and Lender (if applicable). During the preconstruction conference, items to be addressed will include the payment application, change order, and site inspection process.

Once construction has begun, complete payment application and change order packages are to be provided to a PRR Team Member for Agency review and concurrence, if applicable. It is the responsibility of the PRR Team Member to work with the Agency Architect to complete the review. Generally, a determination of the Agency review may be expected within 10 calendar days.

For more information, visit HB-1-3560HB-1-3565, and 1924-A.